quiz 2 practice questions - ACCT 351. Guide for Quiz 2,...

ACCT 351. Guide for Quiz 2, spring 2017
Sample Questions: Following is a sample of questions for chapters 9 and 10. These are not indicative of quiz
questions but can help you prepare for it.
Use the following information to answer questions 1 and 2:
DLW Corporation acquired and placed in service the following assets during the year:
Asset Date Acquired Cost Basis
Computer equipment 2/17 $10,000
Furniture 5/12 $17,000
Commercial building 11/1 $270,000
1. Assuming DLW does not elect §179 expensing or bonus depreciation, what is DLW’s year 1 cost recovery for the
three assets in total?
A. $5,296
B. $6,296
C. $11,352
D. None of the above.
2. What is DLW’s year 3 cost recovery for each asset if DLW sells all of these assets on 1/23 of year 3?
3. On March 15, 2013 Mike placed a light truck in service in his business. The truck is used only for business
purposes. He purchased the truck for $30,000. The truck has a useful life of 8 years and its salvage value is
estimated to be 10% of its cost. What is the MACRS depreciation for 2013?